Crackdown on offshore gaming

Philippine President enforces offshore gaming ban, rejects calls for new legislation

Philippine President Ferdinand R. Marcos Jr
2024-11-14
Reading time 1:45 min

Philippine President Ferdinand R. Marcos Jr. has clarified that his recent executive order (EO) is sufficient to ban Philippine Offshore Gaming Operators (POGOs) without additional legislative support. Speaking at an event on Monday, Marcos addressed concerns raised by lawmakers who questioned whether the EO could fully prevent offshore gaming operations, suggesting loopholes may still exist. 

The executive order, signed on November 5, mandates a comprehensive ban on all POGO activities and their supporting entities, including internet gaming licensees, IT providers, and live streaming services. The order also halts any new applications or license renewals for offshore gaming operators, which the government has linked to alleged corruption and online scams. 

In his statement, Marcos affirmed that “as long as it’s POGO or has a similar license, it’s banned,” adding that the order applies to any offshore gaming activities regardless of whether they operate under the Philippine Amusement and Gaming Corporation (PAGCOR).

The president’s comments came in response to recent statements from Senator Risa Hontiveros, who warned that the EO might inadvertently allow POGO-like activities within PAGCOR-operated casinos or resorts with junket agreements.

Hontiveros expressed her concern that “special economic zones” could still permit offshore gambling through licensed casinos such as City of Dreams or Fontana. “While I laud the aims of the executive order… [some things] are not clear,” she said, seeking clarification on whether offshore operations could continue under certain arrangements. 

In a news release, Marcos defended the executive order as a strong tool to “safeguard national security, maintain public order, uphold the rule of law, protect the safety of its citizens, and ensure the integrity of the social fabric of the nation.”

He argued that codifying the ban into law was unnecessary, stating that the EO provides a robust framework for eliminating offshore gaming operations and deterring future risks associated with them.

The EO follows a July directive in Marcos's State of the Nation address, where he condemned POGOs as “havens of corruption and crime” and set a deadline for these operators to leave the country by December 31. The president also highlighted the reputational harm and financial crime risks POGOs bring, stating that they damage the country's appeal for foreign investment and tourism.

Additionally, the order comes as the Philippines seeks removal from a global “grey list” of countries at high risk for money laundering and terrorism financing.

Meanwhile, Senator Sherwin Gatchalian, another critic of POGOs, advocates repealing POGO tax legislation to further deter any attempts to resume operations under future administrations. “We will continue with the law to… repeal the taxation of POGOs,” Gatchalian said, cautioning that the EO alone might not prevent a potential return of offshore gaming.

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